Millions of Teens Flee Facebook. Now What?

1/17/2014 2:44PM

Facebook is shedding teen users by the millions, so where are the kids heading to? How much should the social site be worried? CEO of iStrategyLabs, Peter Corbett, discusses his company’s study on digits. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... I ... it's Facebook's still a hit with young people ... maybe not so much will commit Digits I'm Simon Constable Peter Coleman of my Strategy Lamb's joins us now to discuss this father ... Peter thank you very much for being map ... my pleasure to have any ... single group will look to Facebook in twenty eleven us about the three years ago a new recently visited revisited that they know what you find ... well we found that in the thirteen this seventeen year old age break there is a twenty five percent decline in the total addressable user base so what wedding colors ... a lot of places actually of the first and foremost was the going is Instagram which I was in Facebook loans so that doesn't the streaming Facebook is a problem ... that you shifting the products that are using ... the going to snapped after going to what's out there going to WeChat ... aam they're going to a number of places in the just the fickle audience it's hard to keep in one place for a long period time ... and what I didn't know was happy enough at a fickle audience aam ... what is it that they wants this time ... he I think he's really want a bit of privacy the ... psychological weight involved in managing your Facebook profiles very serious and there's a lot of ... the rest the goes on when you're breaking up with people in hooking up with new people your ... taxes are looking forward to posting your ... Kate White in she liked this photo when he didn't like that ... if you move to Twitter for example there's a lot less of it right there's a weak leader maybe maybe a favorite ... in sourcing allowed teams shifting to the Twitter platform as well ... I'm paying that bill will want privacy though I know I like I like Tennessee I just ... don't post what I know mom payable on the back ... as the error in I think we all want privacy but for teenagers what they want more sometimes is soulful Capital what that means is ... they're more interested in how many favorites of my photo ... that I have how many people are following me on Twitter how may people are falling the ... on Instagram and they begin to feel like ... many celebrities whether that's a good thing or bad thing ... and that's really what they wanted were willing to trade their privacy for that many celebrity factor ... while ... it's us on what to do a deal with a double s now the over fifty five crab which at maybe your eye and ... aam Vale flocking to front Facebook is that a good or bad thing for Facebook ... I sent her victory for Facebook guy we saw that that demographic the fifty five plus age curb ... crude eighty percent over the three-year period ... when we have looked into doesn't end to the beloved with a great reversal around three hundred percent ... and that's a really good thing for Facebook is you know as you might imagine a It's growing directly as baby boomers are moving into that ... cohort ... and that demographic has a tremendous amount of money this ... so that's not a bad thing for Facebook ... what's happening is you can imagine is the younger audience ... they'll want to hang out with their parents their grandparents on the same platform so that you think ... everything's like as I said Mr. Graham and snaps habits are not nice when it said I don't remember exactly who said this is that when when you ... when you have a a user base or a cost of a place if you like you half the cost of the new look for the new and younger ones ... otherwise you'll end up like Wall once I win on Hamza Wallace is that they they you know the customer base to speak and sold them at the old died in those non last thing that's gonna be a problem at some point of fifty five ... isn't exactly all these things ... but eventually you hafta bring the younger based bank and ... you're right and that's the reason why a Facebook bought Instagram um it's also a reason why they made a ... three billion dollar acquisition offer for Snapchat which was rebuffed ... and so Facebook is either going to continue the acquisition hungry ... or are there going a half to develop that next best product that excites the younger generation ... the Mac sexy thing thank you Brian much the tech called it a Buy strategy Labs Reaper shady time ... my pleasure to care ... I'm Simon Qassam on and this is digits ...